There are bright spots in the New York state and metro New York City economy, with improvements in a few areas, stability in others -- yet some sectors continue to weaken, the Federal Reserve reported Wednesday.
The report provides insights into the economy of the Fed's Second District, made up of New York State, the 12 northern counties of New Jersey and Fairfield County in Connecticut.
The labor market is still “exceptionally slack” and hasn’t shown signs of improving, the Fed says. The tourist trade is also suffering, and commercial real estate markets are showing mixed signals.
Manufacturing, retail sales and consumer confidence are improving, the Fed says. Commercial real estate in Manhattan’s market continues to weaken while in surrounding areas the industry is “slack but stable.” The same is true for housing.
Lending is a mixed bag. “Bankers again report increased demand for home mortgages but steady to somewhat weaker demand in other loan categories,” the Fed said. “They also report further tightening in credit standards and continued moderate increases in delinquency rates across all segments.”
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